A South African healthcare firm has emerged as the favourite to run a new North East eye treatment centre.

Fears are growing for the effect it will have on NHS staff, after it was revealed millions of pounds of taxpayers' money will be handed to Netcare.

The South African private healthcare giant is being lined up to treat 400 cataract patients a year in Tyne and Wear and Northumberland.

Netcare bosses say the deal would benefit the South African health system, but North East union leaders said it would be disastrous for the NHS.

Liz Twist, Unison head of health in the region, said: "We all want to see people who are sick or in pain treated as quickly as possible and this appears to be a simple solution, but it's one that will have long-term damaging consequences for the NHS.

"The more routine operations often subsidise the complicated procedures that require more long care stay in the NHS. Without these operations we may be in the shameful position of seeing NHS wards close."

Netcare and British firm Mercury Healthcare are among seven firms to have been shortlisted to run the centre, the location of which has not been revealed.

North East strategic health authorities believe new centres like this will cut waiting times and ease the pressure on some of the region's NHS hospitals.